Cathay's profit margins under pressure as fuel-hedging losses mount

Hong Kong

CATHAY Pacific Airways Ltd, the marquee Hong Kong airline, suffered millions of dollars in losses from fuel-hedges in the past two years. With the city's government adding new fees on passengers to fund the building of a runway, the carrier faces more challenges to retain profit margins.

The charges to fund the expansion of the Chek Lap Kok airport follows the city government banning from February the fuel surcharges that airlines could levy after crude oil prices tumbled to as low as US$26 a barrel.